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The APRC provides a clear picture of the total yearly cost of a mortgage, shown as a percentage of the loan. It factors in the mortgage interest rate, the loan term, and any additional fees.

If your mortgage deal includes a product fee, you have the option to add this to your loan amount.

Keep in mind that doing so will increase your monthly payment, the total amount borrowed, and the interest you’ll repay.

It’s important to consider the product fee when comparing deals. If you prefer not to add it to your loan, you’ll need to pay the fee in full before your mortgage is completed.

If you miss a mortgage repayment, your account will go into arrears, which could affect your credit history. Continued missed payments may lead to further action, including the possibility of home repossession. If you’re struggling, reach out to us we’re here to help.

BACS allows direct payments between banks, commonly used for direct debits and credits.

The base rate is set to help keep inflation under control. When it changes, it can affect the interest rates on savings and mortgages, meaning they may go up or down.

The Bank of England sets the base rate, which influences variable and tracker mortgage rates.

CHAPS (Clearing House Automated Payment System) is a UK payment system that allows you to send money on the same day, as long as the payment is made before the cutoff time.

Your mortgage consists of two parts: the capital (the amount you borrow) and the interest (the charge for borrowing the money).

With a repayment mortgage, you make monthly payments that cover both the capital and interest. If you make all agreed payments, your mortgage will be fully paid off by the end of the term, meaning you’ll own your home outright.

Conveyancing Buying, selling or remortgaging a home comes with a legal process called conveyancing. A conveyancer will handle the legal side of things for you, making sure everything runs smoothly from start to finish.

This gives you an idea of whether a lender can offer you a mortgage and how much you might be able to borrow. It’s a great step to take before you start house hunting.

Your deposit is the amount you’ll need to save to help buy your home. The size of your deposit will depend on the price of the home and the mortgage deal you choose.

A Direct Debit is an easy way to make automatic payments. It lets a company, like your council or utility provider, take money from your bank account on agreed dates. This helps you stay on top of bills without the hassle!

An early repayment charge (ERC) is a fee you might need to pay if:

• You pay off your mortgage before your current deal ends.
• You make extra payments that go over the allowed annual limit in your mortgage deal

Electronic verification is a safe and quick way to confirm your identity. It helps keep banking simple and secure.

Sometimes, we may need additional proof of identity.

This is the date your mortgage deal comes to an end. If you don’t choose a new deal, you’ll automatically move onto our reversion rate.

Equity is the part of your home that you actually own. It’s worked out by taking your home’s current value and subtracting what’s left on your mortgage.

You can grow your equity over time by paying off your mortgage, and if you put down a bigger deposit when buying your home, you’ll start with more equity from the beginning.

This gives you an estimate of your monthly payments based on the mortgage deal, your home’s value, your deposit, and how long you plan to borrow for.

This is the most recent estimate of your home’s value based on our latest valuation.

This is the total amount you’ll pay for your mortgage during the initial deal period. It includes any fees, your monthly payments, and the length of the deal to give you an idea of the overall cost. It’s based on the assumption that the interest rate stays the same and that any product fees are added to your mortgage.

This is an estimate of how much you’ll pay for your mortgage in the first year. It assumes the interest rate stays the same and that any fees are added to your mortgage.

Faster Payments is a UK system that makes sending money quicker and easier. Instead of taking up to three working days, transfers between banks are completed in just a few hours—or even minutes!

The Financial Ombudsman Service (FOS) helps resolve problems between customers and financial services in the UK.

• If a complaint can’t be sorted directly, the FOS will adjudicate ensuring a fair outcome.
• If they find someone has been treated unfairly, they have the legal power to put things right.

The FSCS (Financial Services Compensation Scheme) protects your money, up to certain limits, if a UK bank or building society fails.

• It can pay compensation if the bank can’t meet its financial obligations.
• Your savings are protected up to £85,000 per person.

A fixed-rate mortgage means your interest rate stays the same for a set period, so your monthly payments won’t change, even if the base rate goes up or down.

HMRC (His Majesty’s Revenue and Customs) is the UK department that collects taxes, like income tax, to help fund public services.

The initial period is the length of time your mortgage deal lasts. Once it ends, your mortgage will move to a reversionary rate, unless you choose to transfer to an alternative product that we can offer you.

You’ll need buildings insurance when you take out a mortgage for the full reinstatement value of the property.

With this type of mortgage, your payments only cover the interest. You’ll need a plan to repay the full loan amount at the end of the term, which could come from your pension, investments, or other savings.

Loan to value (LTV) is the percentage of a property’s value that you borrow. For example, if a home costs £200,000 and you put down a £20,000 deposit, you’ll borrow £180,000—making your LTV 90%.

The most you can borrow depends on the mortgage deal you choose and your personal circumstances.

The least you can borrow depends on the mortgage deal you choose and your personal circumstances.

Your monthly repayment amount for a repayment mortgage is based on:

• The amount you borrow and the interest rate
• Your deposit
• The mortgage term you choose

This gives you an idea of what you’ll need to pay each month.

You might need to pay this fee if:

• You fully repay your mortgage before the term ends
• You switch to a new lender (remortgage) before your term is up

This fee doesn’t apply if your mortgage reaches the end of its agreed term naturally.

The mortgage term is how long you’ll take to repay your mortgage. You can borrow up to 40 years dependant on your age and circumstances.

Negative equity happens when your home is worth less than the amount you still owe on your mortgage, usually due to a drop in house prices.

The total amount you still owe on your mortgage, including any interest. As you make repayments, this balance decreases, and if you stay on track, your mortgage will be fully paid off by the end of the term.

The overall cost for comparison shows the total yearly cost of your mortgage over its full term, expressed as a percentage (APRC).

An overpayment is when you pay more than your usual monthly mortgage payment. This can help you pay off your mortgage faster and reduce the interest you owe. Some mortgage deals have limits on how much you can overpay without a fee.

Porting means transferring your current mortgage deal to a new property. Not all mortgages allow this, so check with your lender to see if it’s an option for you.

Certain Power of Attorneys  allow you choose someone to manage your finances on your behalf.

A product fee is a charge on some mortgage deals. If you don’t add it to your mortgage, you’ll need to pay it in full before your mortgage is completed. If you choose to add it to your loan, it will increase both the amount you borrow and the total you repay. This fee may be a fixed amount or a percentage of the loan, depending on the product. Some lenders might refer to it as an “Arrangement Fee.”

This is when you switch to a new mortgage deal with the same lender, usually when the initial period of your current mortgage is ending.

Mortgage redemption means fully paying off your mortgage or switching to another lender. If you want to repay your mortgage early, you can request a redemption statement from your lender to get the settlement amount.

Remortgaging is when you switch your mortgage to a new lender. This is different from a product transfer, which means moving to a new deal with the same provider.

Remortagaging can be on a like for like basis, or you may choose to raise money at the point of remortgaging for a variety of purposes.

This refers to how you repay your mortgage. Your payments can be based on either a repayment mortgage (where you pay off both the loan and interest) or an interest-only mortgage (where you only pay the interest and repay the full loan at the end of the term).

A representative example shows the interest rates and fees you might pay on a mortgage deal. It helps you estimate the cost of your mortgage and compare different deals more easily.

The reversion rate is the interest rate your mortgage switches to after your initial deal ends.

Stamp duty is a tax you pay when buying a property or land in the UK. The rules vary depending on whether you’re in England, Scotland, Wales, or Northern Ireland, so it’s best to check with your conveyancer for details.

The Standard Variable Rate (SVR) is the interest rate your mortgage moves to after your initial deal ends. It can go up or down at any time, so your monthly payments may change.

Title deeds are documents that prove who owns a property or land. Most are now stored digitally by the Land Registry, but you may be able to request a paper copy if needed.

A Tracker mortgage has an interest rate that moves up or down based on the Bank of England’s base rate (BoEBR). Your rate is set at a percentage above or below this base rate, so your monthly payments can change when the base rate does.

A transfer of equity happens when someone is added to or removed from the property’s title deeds. This often occurs due to a separation, bereavement, or changes in ownership arrangements.

A variable rate means your interest rate can go up or down over time. This can happen due to changes in the market or the Bank of England Base Rate.